4. Political Institutions and Economic Performance: The Government-Business Relationship in Japan, South Korea, and Taiwau

Johnson, Chalmers

doi:10.7591/9781501723766-007

Cited by 91 publications

(38 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…These policies helped to overcome capital‐market failures, through channelling financial resources to priority sectors (Gerschenkron, ). Public control of finance also had an important political function: providing the state with enough power over business groups to mould them into a developmental coalition and strengthen state organization (Johnson, ; Skocpol, : 6; Woo‐Cummings, : 12). A host of empirical studies show that methods of financial control were utilized extensively in successful developmental states, including Korea (Amsden, ), Taiwan (Wade, ), Japan (Aoki and Patrick, ) and China (Nolan, ).…”

Section: The Role Of Finance In the Developmental Statementioning

confidence: 99%

Finance and Industrial Policy in Unsuccessful Developmental States: The Case of Pakistan

Naqvi¹

2018

Development and Change

View full text Add to dashboard Cite

While a large body of research indicates that state‐directed finance worked for successful East Asian developers, the dominant assumption remains that countries with a weak state capacity, where corruption is rife, should not ‘try this at home’. In this article, that narrative is questioned through a case study of the role of the financial sector in Pakistan, which is widely considered to be a successful case of financial liberalization, contrasting the role of the publicly controlled financial system in the 1970s and 1980s with that of the liberalized financial system in the 2000s. Utilizing archival firm‐level and aggregate data, historic government documents, and interviews with policy makers, financial sector employees and industrialists, it is argued that in the Pakistani case, the withdrawal of state control over the financial sector led to a deterioration of outcomes. This resulted in the allocation of credit away from the productive sectors, namely industry and agriculture, towards unproductive sectors, for speculative purposes; and in the health of the financial sector not improving as expected, with non‐performing loans and corruption remaining a problem, and banks actually becoming a greater burden on government finances. This indicates that even states with weak capacity and flawed industrial policy may be better off with some degree of public control over finance.

show abstract

Section: The Role Of Finance In the Developmental Statementioning

confidence: 99%

Finance and Industrial Policy in Unsuccessful Developmental States: The Case of Pakistan

Naqvi¹

2018

Development and Change

View full text Add to dashboard Cite

show abstract

“…Currently, there are the New (Choi 1993, p. 24). Its crux was the state-led economic planning and implementing to achieve national security and economic prosperity through exportoriented industrialization (see, Johnson 1987;World Bank 1993). Through the interventionist model, South Korea achieved rapid economic growth at an average rate of 8-10% annually for almost three decades.…”

Section: Personalistic Cues On the Three Main Issue Cleavagesmentioning

confidence: 99%

“…Based on these exclusive benefits, chaebols were able to actively invest and extend their businesses to the extent that they integrated diverse industrial groups both vertically and horizontally (Johnson 1987). The vertical integration refers to having a complete set of industrial groups of their own that covers the complete operations from importing raw materials to exporting final products.…”

Section: Developmental State Of South Korea: Highly Concentrated Modelmentioning

confidence: 99%

“…First, the KMT, a government in exile from China did not have close ties with local elites, which enabled the government to design and implement economic policy independently of indigenous capitalists (Hsieh 2011). Second, the KMT was not comfortable with the idea of having big capitalists like the Korean chaebol or Japanese zaibatsu (Hsieh 2011;Johnson 1987). In order to maintain their political and economic dominance in Taiwan, the KMT, or mainlander elites repressed economic activities of Taiwanese natives and prevented them from growing too much.…”

Section: Taiwan: a Decentralized Systemmentioning

confidence: 99%

“…In order to maintain their political and economic dominance in Taiwan, the KMT, or mainlander elites repressed economic activities of Taiwanese natives and prevented them from growing too much. Third, the KMT developed lots of state-owned companies and concentrated financial benefits to the public sector industries not the private sector (Haggard 2000;Hsieh 2011;Johnson 1987;D. Kang 1995).…”

Section: Taiwan: a Decentralized Systemmentioning

confidence: 99%

See 2 more Smart Citations

Parties without brand names

Kim¹

View full text Add to dashboard Cite

State–Business Relations, Financial Access and Firm Performance: A Causal Mediation Analysis

Karahasan

Bilgel

2020

J of Intl Development

View full text Add to dashboard Cite

This study investigates the triangular relationship among state-business relations, financial access and economic performance in the Middle East and North Africa. We hypothesize that financial intermediation is a significant mediating factor in the relationship between state-business relations and firm performance. Employing a causal mediation analysis, results show that inefficient ties with the state are a cause of poor firm performance. Inefficient state-business relations reduce firm performance by 2.3 to 4.4 per cent through access to finance and by 12 to 40 per cent via its direct effect. About 3 to 16 per cent of the total effect is mediated through financial access, while the remaining is the direct effect.

show abstract

4. Political Institutions and Economic Performance: The Government-Business Relationship in Japan, South Korea, and Taiwau

Cited by 91 publications

References 0 publications

Finance and Industrial Policy in Unsuccessful Developmental States: The Case of Pakistan

Finance and Industrial Policy in Unsuccessful Developmental States: The Case of Pakistan

Parties without brand names

State–Business Relations, Financial Access and Firm Performance: A Causal Mediation Analysis

Contact Info

Product

Resources

About